Finance is the often-overlooked aspect of ageing, which does cause a lot of problems.
Did you know, most people spend more time planning for their annual two-week vacation than their whole retirement! Although poverty in retirement is not entirely widespread. Just 14% of pensioners in the UK defined as having less than 60% of the median income. (AgeUK) it’s important to have a plan to have a fulfilling and comfortable retirement.
Why To Save
“A pension pot is essentially a tax-free pot of money both you and your employer (and sometimes the government) pays into as a way of saving up for your retirement.” (via moneysavingexpert)
It’s important to know what you actually want to get from retirement. Travelling is usually at the forefront of most people’s plans when you retire, having an idea of what you want to do gives you an insight into how much you’ll need on top of living costs.
A survey of 389 expats show the vast majority of people who moved (81%) are happier living in their new country compared to their old one.
Coming up with an income plan before you retire will relieve any financial stress and give you an insight into the lifestyle you’ll be able to lead.
An Ageing Population
“The number of centenarians is set to increase six-fold over the next 25 years, while one in 12 people will be aged over 80” (ONS via Telegraph)
People are living longer than ever, meaning that the retirement age is no longer aligned with the life expectancy, as used to be the case. Retiring at 65 now means we have up to another 40 years of living.
This leads to new worries, as our savings now need to support us for longer than ever before.
“My parents went to Alaska and do you know that everyone was so on in the years that the decks were practically deserted by nine o clock because everybody had already gone to sleep” (Dr. Gale Olinekova: 1998, p.313.)
Don’t wait until you retire to do what you want. Why not do it when you know you can still enjoy it?
Now is the time to do what you’ve always wanted. It’s a misconception to wait until retirement to do everything. Forbes repose the question of what to do in 20 – 30 years of retirement to, “What will I regret if I don’t make it to retirement?”
Whereas the plan is not to completely disregard retirement, which would contradict a large part of what’s been said so far, but to find a balance. Set money aside for a fulfilling retirement without compromising your aspirations in the present.
Maintain Good Health
Any health complications are of course detrimental to our standards of living. There is little use having a nest of savings if you’re not there to enjoy them. Throughout life you need to be doing all you can to ensure you age well. Follow a healthy diet and exercising are some of the best things you can do.
If you’re interested in finding more about finance, pensions and how to ensure a happy and fullfiling retirement, have a look at some of these useful links below.
Money Matters, Age UK: 2016
Pension Need To Knows, MoneySavingExpert: 2016
4 Reasons Expat Retirees Are Happier, Next Avenue: 2016
Ageing Britain, Telegraph: 2015
Don’t Wait For Retirement To Create The Life You Deserve, Forbes: 2015 http://www.forbes.com/sites/robertlaura/2015/02/18/dont-wait-until-retirement-to-create-the-life-you-deserve/#a18a2e031766